Greenergy mulls closure of UK biodiesel plant

British energy firm Greenergy has started a consultation to cease production at its biodiesel plant in Immingham on the UK’s east coast, citing sustained "market pressures" despite recent cost-cutting measures.

IMAGE: Greenergy's biodiesel plant in UK. Trafigura

The plant continues to face significant headwinds, including weak growth in UK biofuel blending mandates and competition from subsidised US-origin products, chief executive, Adam Trager said.

Despite several cost-cutting measures aimed at improving viability, these challenges have persisted.

The uncertainty is also preventing the company from committing to the level of investment needed to maintain long-term operations at the site, he added.

Operations at the Immingham plant were already paused in May as part of Greenergy’s earlier cost-reduction strategy.

Greenergy, one of Europe’s primary producers of waste-based biodiesel, was acquired by global commodity trading firm Trafigura in July 2024. The potential closure of its UK operations would mark a significant setback for the country’s biofuels sector.

“We are seeking urgent talks with ministers about increasing the amount of biofuels used in the UKs petrol and diesel, a move which will help protect the biofuels sector, as well as cutting the UK's emissions, particularly from HGVs,” Trager said.

The warning comes amid growing concerns across the industry. The European Waste-based & Advanced Biofuels Association (EWABA) has previously cautioned that policy inaction is pushing biofuel production “to the brink” not only in the UK, but across Europe.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online